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06/02/2009
Landlords should 'buy below market value' |
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The founder of Property Investors Network says that landlords who follow a few simple rules will reap the benefits.
Simon Zutshi says that now is a good time to buy, as long as the investor pays below market value, as prices are set to continue to fall.
He claims that buying below market value will give them a "buffer" and Mr Zutshi also suggests that investors buy for cash flow, so that their outlay sees a good return.
"That is a lot easier to do these days because purchase prices have come down and interest rates are pretty low as well," he said.
Yesterday the bank of England's monetary policy committee elected to cut interest rates again, this time by 0.5 percentage points to one per cent.
Mr Zutshi concludes that a property that is generating cash flow minimises the risks and creates a financial buffer, which could help the landlord deal with any legal issues with tenants or rental arrears.
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